CWW said trading had been in line with management expectations for the three months ended December 2011, with its full year outlook remaining unchanged.

The company said it was on track to increase its hosting capacity in the UK.

"Actions to reduce operational expenditure, reprioritise capital expenditure and deliver sustainable cash generation are underway. We have designed a new operational model which will focus our leadership team on cash generation and we have continued to enhance the leadership team," added Darby.

"We are working on a number of medium term strategic initiatives aimed at enabling future growth, reducing complexity and structurally reducing the cost base. We will update the market on progress on these initiatives in May." ®